Hyundai and Kia Now Meet Requirements for Federal Tax Credit for Electric Vehicles.
However, the Trump administration could eliminate the incentive.
Five electric models from Hyundai, Kia, and Genesis have obtained the necessary rating to qualify for the $7,500 federal tax credit for electric vehicles in the United States. Among the eligible vehicles are the popular Hyundai Ioniq 5 SUV and the family-oriented Kia EV9. In total, 25 electric and plug-in hybrid cars from 10 different brands meet the requirements for this benefit.
The rules set by the Biden administration require that vehicles be manufactured in North America to qualify for the credit, as well as mandating that certain battery components be sourced from specific suppliers. In 2022, Hyundai and Kia had threatened legal action in response to the Inflation Reduction Act, which, while expanding credits, excluded vehicles produced in Korea.
The situation changed when Hyundai opened a $7.6 billion electric vehicle manufacturing plant in Georgia, where the Ioniq 5 and the new Ioniq 9 will be produced, making them now eligible for the credit.
As of January 1, 2025, Hyundai, Kia, and Genesis models are officially added to the list of Federal Tax Credits. However, there is uncertainty surrounding the continuity of this benefit due to the potential return of a Trump administration, which has promised to eliminate these incentives from day one. Despite this, U.S. automakers have requested that the program be maintained.
If Congress does not decide to cancel the program, buyers of Hyundai and Kia vehicles may still benefit from the credit during the 2025 fiscal year or take advantage of it through a lease agreement. However, reports suggest that Trump could attempt to implement changes without Congressional intervention, which could include eliminating credits for leased vehicles or removing information about the program online.